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Ethiopian, Russian Entrepreneurs to Establish Trolley Bus Manufacturing Factory
The Ethiopian Herald (Addis Ababa)
November 15, 2006
Addis Ababa, Ethiopia
An Ethiopian and two Russian companies yesterday signed an agreement providing for the establishment of electric-driven bus manufacturing factory here.
The factory, which is to be jointly established by the Russian Rus Afro-trol and VIP holding companies and the Ethiopian Afro Asian Trading Enterprise with a total capital of 100 million US dollar, will be the first of its kind in Africa.
Signing the agreement, Eng. Getachew Eshetu General Manager of Afro Asian Trading Enterprise, who is also the major shareholder of the factory, said that the factory would be established on 43 hectares in Debre Markos town.
The factory is known across the world for its trolley buses and is the sole provider for several cities in Russia and Eastern Europe, Getachew said.
The factory will start work by assembling trolley buses during its initial stage but will later manufacture the body parts of the bus as well in the country, he said.
According to the General Manager, the work on the construction of the factory will begin next January, and in six months period it will manufacture its trial products, he added.
The factory will have a capacity to manufacture 500 buses annually and when going fully operational it will create employment opportunity for 5,000 people. Getachew also indicated that the factory has plans to manufacture buses for export and also expand the manufacturing sites to other African countries.
Rus Afro -trol Company President Pavel Berlin said the factory would manufacture buses that are suitable for the weather conditions of the country.
The buses are expected to reduce diesel consumption and environmental pollution as they operate on electrical energy of about 24 volt from electric boxes installed across its way, the President said.
Having a seat capacity for150 to 200 people and with possible modification of the size as needed, the bus is believed to help address the present transportation problem.
Indicating that Ethiopia is endowed with abundant potential of electric energy, Ethiopian Investment Agency Director Abi Wolde-Meskel congratulated the companies for choosing Ethiopia to erect the factory. He assured the owners that the Agency would provide the necessary support for the factory.
Abi also indicated that the establishment of the factory would further strengthen relations between Ethiopia and Russia.
According to the agreement, the Ethiopian shareholder and the two Russian companies will have 70 per cent and 30 per cent ownership share respectively.
by Aregu Balleh
Trolley Bus coming to Ethiopia
Sep 25 2006 ENA